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From this level, how would grains respond to a 2008 scale financial meltdown?
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Alberta Farmer
Posted 8/29/2014 01:23 (#4044352)
Subject: From this level, how would grains respond to a 2008 scale financial meltdown?



West Central Alberta Coldest, wettest edge

We all remember what happened to grains and commodities in general back in 08 and 09 with the financial meltdown.  But that was from very lofty levels with lots of speculators and fund money involved( I assume).  When the inevitable happens and we get the next panic in the financial markets, with grains already at depressed levels, will grains again be taken out behind the woodshed, or are we back to a supply and demand driven market with very little speculation, therefore unlikely to be affected by margin calls, forced liquidations, and sell anything that is liquid?  Will short positions be covered to free up capital, regardless of profit or loss?  Could we see a flight to safety, which includes commodities( I know that rarely seems to be the case throughout history, with the USD being the preferred safe haven)?  Or should we be considering that the next crisis might just be a crisis in confidence in the dollar or other currencies, after all, we know that all of the financial problems of the world were solved during the last go around, and will never come back to haunt us again, has to be something different.......

I obviously don't have nearly enough things to worry about with the temp 2 degrees above freezing so far tonight, so I figured I might as well ponder this too.  



Edited by Alberta Farmer 8/29/2014 01:28
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